IMF head calls for extra funding

IMF head calls for extra funding
The head of the International Monetary Fund says it will need more funding if it is to play a bigger role in aiding a global economic recovery.

Dominique Strauss-Kahn told the BBC that the IMF was likely to need at least $100bn (L68bn) of extra funding over the course of the next six months.

Mr Strauss-Kahn also called on states to continue cutting interest rates.

His comments came as the Japanese economy officially entered a recession, shrinking 0.1% in the third quarter.

This follows a 0.9% contraction in the world’s second-biggest economy in the previous quarter from April to June.

On Saturday, G20 leaders agreed at a summit in Washington to co-operate closely to stimulate worldwide economic growth, with both developed and developing countries working to cut taxes and interest rates, and increase government spending.

Finance ministers were also asked to discuss the longer-term reform of financial regulation, including executive pay and risky lending.

Their proposals will be discussed at a follow-up summit in April.

‘Safety net’

The weekend’s G20 meeting brought together leading industrial powers, such as the US, Japan and Germany, and emerging market countries like China, India, Argentina, Brazil and others – representing 85% of the world’s economy and two-thirds of its population. more